Dear all,
Real estate builders sometimes offer the buyer's agent a bonus for a transaction. The bonus is offered in conjunction with the commission. For e.g. The builder may offer a 3% commission on the purchase price and a 1% bonus.
Is the bonus also considered a commission? If so can a part of the bonus be rebated to the buyer as well? Can the agent issue a 1099-MISC to the buyer on the portion of the bonus rebate to the buyer when the entire bonus amount is reported as income to the agent by their broker.
Many thanks in advance for your responses.
